(a) Subject to any specific limitation set forth in a gift instrument or in law other
than this Chapter, an institution may delegate to an external agent the management
and investment of an institutional fund to the extent that an institution could prudently
delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent
person in a like position would exercise under similar circumstances, in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes
of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance
and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to
exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) of this section is not liable
for the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution
that is subject to the laws of this State, an agent submits to the jurisdiction of
the courts of this State in all proceedings arising from or related to the delegation
or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees,
officers, or employees as authorized by law of this State other than this Chapter.
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